Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Property Tax Annotations

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Annotation 790.0078

790.0078 Exemptions. A California nonprofit public benefit corporation operates a college that qualifies as a nonprofit institution of higher education. The corporation leases an entire building from a for-profit entity. The lease was a triple-net lease that passed on all costs and expenses of the property, including a portion of the property taxes to the corporation. However, the corporation received the college exemption for the property.

The entity that owns the real property sold the property subject to the lease to an LLC, another for-profit entity. However, since the corporation's use of the property to operate a college constituted exclusive use of the property for educational purposes and no change in the use of the property occurred, the property continued to be eligible for the college exemption. Thus, under Revenue and Taxation Code sections 75.21(c) and 75.22, the property can continue to be exempt despite a change in ownership. Therefore, the property will not be subject to supplemental assessment if the claimant files a claim for exemption within 30 days of the notice of supplemental assessment and meets all the qualification for exemption within 90 days after the change in ownership. C 7/29/2008.